Philippine Prudential Life Insurance: "We are Not Prudential Life Plans"

Details

Category: Corporate

The last time we talked about pre-need companies was when the Legacy Group (Legacy Consolidated Plans, Scholarship Plan Philippines, All Asia Plans) closed shop, a few years after the College Assurance Plan (CAP) and the Pacific Plans, Inc. (PPI) faced financial problems of their own. When we conducted a poll on the readers' confidence in pre-need companies,  majority of the votes reflected a low level of confidence -- 45.1% for "very low" and 24.8% for "low".

In the first quarter of 2012, we see yet again another pre-need company -- Prudential Life Plans Inc. (dealing in pension, education and memorial plans) -- making the headlines because of financial woes, with the holders of pre-need plans frustrated by the "loss" of their hard-earned money. Given the high emotions associated with this issue and in the interest of avoiding unfair collateral damage to entities not involved in the matter, it may be well to highlight the announcement of an insurance company -- Philippine Prudential Life Insurance Company, Inc. -- that it is NOT the same as Prudential Life Plans. Reproduced below is the statement issued on 8 February 2012 by Philippine Prudential.

[You can still express your opinion regarding your level of confidence in the pre-need industry using the comment section below.]

------------------

Philippine Prudential Life Insurance Company, Inc. (Philippine Prudential) assures its Policyholders and the general public that it has no filial or business relationship whatsoever with Prudential Life Plans, Inc. (PPI), a pre-need company which deals in pension, education and memorial plans. This is in response to customer and public concern following a current news report that Prudential Life Plans was issued a “stay order” by the Insurance Commission of the Philippines (IC). Philippine Prudential Life Insurance Company, Inc. remains stable, financially strong and capable of meeting all of its obligations, as a duly-licensed life insurance company by the Insurance Commission.

Philippine Prudential, founded in 1963, continues to be an industry leader in innovation and growth in the life insurance industry in the country. It is a reputable 100% Filipino-owned financial services company committed to providing the best financial advice and diversified and affordable products — such as endowment plans, whole life plans, group and permanent plans, healthcare coverage, educational and pension policies and Credit Life Insurance — to its valued clients through its multiple and accessible distribution channels, through a nationwide sales office network manned by over 1,200 sales agents and employees.

Now celebrating 49 years of sterling, trustworthy and continuous service, Philippine Prudential continues to grow and serve the best interests of its more than 1.5 Million Policyholders and their families, with over Php 57 Billion Business-In-Force. As of December 31, 2010, it has Total Assets of over Php 681 Million, which represents a 16.2% growth over the previous year or a tremendous 272% over a span of five years. Total Equity is at over Php 228.9 Million, from merely Php 139 Million in 2005, or a five-year growth of 63.60%. Net Income is recorded at Php 23.86 Million or a 210% growth over five years. Its Total Premium Income is recorded at over Php 890 Million, a 31% growth over previous year or a 454% growth since 2005. Total amount of Claims paid is over Php 88.47 Million for the year while the Legal Policy Reserves, the funds invested to be used for future claims, is recorded at over Php 351 Million, or an increase of Php 69 Million from previous year. Total Investments are at over Php 351.47 Million.

Philippine Prudential has been awarded the prestigious Superbrands status, making it the only life insurance company to be given this distinction for two consecutive years: for the 2009-2010 awarding period and, again, for the 2011-2012 awarding period. In addition, the Company recently received a special recognition from the Insurance Commission for its valuable contributions and efforts in the field of Microinsurance during its “Gabi ng Parangal at Pasasalamat sa mga Tagapagtaguyod ng Microinsurance.”

According to Philippine Prudential President and CEO, Mr. Gregorio D. Mercado, “Philippine Prudential Life Insurance Company, Inc. is financially sound, as it remains to be a stable and strongly capitalized company, duly-licensed by our government regulator, the Insurance Commission. Our valued Policyholders can be assured that their interests are protected with the Company’s financial strength and business expertise. We remain focused on the daily execution of our business and continue to provide our clients with the highest levels of service, as we continue to expand and write new business, while remaining committed to meeting our Policyholders’ needs.”